Accounting 0452 · IGCSE · Correction of errors

Correction of errors — practice question

Mona paid $32 000 for a new motor vehicle. That total included $100 for fuel and $250 for road tax. She debited the purchases account and credited the bank account with $32 000. Which journal entry would amend this error?

  • ADebit motor vehicle purchases $32 000, Credit bank $32 000
  • BDebit purchases $32 000, Credit motor vehicles $32 000
  • CDebit motor vehicles $31 650 and motor vehicle expenses $350, Credit purchases $32 000
  • DDebit purchases $32 000, Credit motor vehicles $31 650 and motor vehicle expenses $350

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